Mortgage Calculator
Calculate your monthly mortgage payment, compare loan terms, and see a full amortization schedule. Updated with current 2026 rates.
Data as of June 2026
Enter your home price and loan details, then click "Calculate Mortgage Payment" to see your monthly breakdown.
How Your Mortgage Payment Is Calculated
Your monthly mortgage payment consists of four main components, often called PITI + PMI: Principal, Interest, Taxes, Insurance, and Private Mortgage Insurance. Here's how each one works:
- Principal — The amount you borrowed to buy the home. Each monthly payment includes a portion that goes toward reducing your loan balance. In the early years, only a small fraction goes toward principal; in later years, most of your payment does.
- Interest — The cost of borrowing money, expressed as an annual percentage rate (APR). As of June 2026, the average 30-year fixed rate is 6.52%. Over a 30-year loan, you'll typically pay more in interest than the original purchase price.
- Property Taxes — Paid to your local government based on your home's assessed value. Rates vary from 0.2% in Hawaii to 2.5% in New Jersey. Most lenders collect taxes monthly through an escrow account and pay them annually.
- Homeowners Insurance — Protects your home against damage from fire, storms, theft, and liability. The national average is $2,285 per year in 2026, but costs vary significantly by state due to climate and disaster risks.
- PMI (Private Mortgage Insurance) — Required when your down payment is less than 20%. PMI protects the lender, not you. It typically costs 0.3% to 1.5% of the loan amount annually and is automatically canceled once you reach 20% equity.
2026 Mortgage Rates by Loan Type
Current average mortgage rates as of June 2026. Rates are for well-qualified borrowers (740+ credit score) and may vary based on your location, loan amount, and financial profile.
| Loan Type | Rate | Monthly Payment* | Total Interest |
|---|---|---|---|
| 30-Year Fixed | 6.52% | $2,027 | $409,720 |
| 15-Year Fixed | 5.05% | $3,174 | $171,320 |
| 10-Year Fixed | 4.90% | $4,222 | $106,640 |
| 5/1 ARM | 5.90% | $1,898 | $368,280 |
| FHA 30-Year | 6.25% | $1,970 | $389,200 |
| VA 30-Year | 5.99% | $1,915 | $369,400 |
| Jumbo 30-Year | 6.35% | $1,990 | $396,400 |
* Monthly payment shown for P&I only on a $320,000 loan (20% down on $400,000 home). Does not include taxes, insurance, or PMI.
15-Year vs 30-Year Mortgage: Which Is Better?
One of the biggest decisions when buying a home is choosing your loan term. Here's a head-to-head comparison:
📉 15-Year Mortgage
Higher monthly payments but massive interest savings. Best for buyers with stable income who can afford a larger payment.
- Rate: ~5.05% (typically 1.5% lower)
- Payment: ~$3,174/month (P&I on $320K)
- Total Interest: ~$171,320
- Interest Savings: $238,400 vs 30-year
- Best for: Lower housing costs in retirement, building equity fast
📈 30-Year Mortgage
Lower monthly payments with maximum flexibility. Best for first-time buyers and those who want to invest the difference.
- Rate: ~6.52% (current 2026 average)
- Payment: ~$2,027/month (P&I on $320K)
- Total Interest: ~$409,720
- Payment Difference: $1,147 less per month
- Best for: Cash flow flexibility, investing the difference, qualifying easier
How Down Payment Affects Your Monthly Payment
Your down payment doesn't just reduce your loan amount — it also affects your interest rate (via risk-based pricing) and whether you need PMI. Here's the impact on a $400,000 home at 6.52%:
| Down Payment | Loan Amount | P&I Payment | PMI (Monthly) | Total Monthly |
|---|
6 Tips to Lower Your Mortgage Payment
- Shop Multiple Lenders — Getting quotes from 3-5 different lenders can save you 0.25% to 0.5% on your rate. On a $320,000 loan, just 0.25% lower rate saves you $50/month or $18,000 over 30 years.
- Increase Your Down Payment — Even an extra 5% down can eliminate PMI and lower your rate. Going from 5% to 20% down on a $400K home saves approximately $400-$500 per month in combined PMI and interest.
- Improve Your Credit Score — A 760+ credit score vs 620-639 can save you roughly 0.75% on your rate. That's about $150/month on a $320K loan. Check your credit report for errors 6-12 months before buying.
- Buy Points (Discount Points) — Paying 1 point (1% of the loan amount) upfront typically lowers your rate by 0.25%. On a $320K loan, $3,200 buys about $50/month in savings. Break-even is usually 5-6 years.
- Consider a Smaller Home — Reducing your home price by just 10% (from $400K to $360K) cuts your monthly payment by $200-$250 and saves $45,000+ in total interest over 30 years.
- Look Into First-Time Buyer Programs — FHA loans require just 3.5% down, VA and USDA offer 0% down. Many states offer down payment assistance programs worth $5,000-$15,000 for qualifying buyers.
Frequently Asked Questions About Mortgages
What credit score do I need for a mortgage in 2026?
Conventional loans typically require a 620+ credit score, though 740+ gets you the best rates. FHA loans accept scores as low as 580 with 3.5% down. VA loans have no minimum credit score requirement (though most lenders require 580-620). USDA loans typically need 640+.
How much house can I afford on a $75,000 salary?
Using the 28/36 rule: your monthly housing costs should not exceed 28% of gross monthly income. On $75,000/year ($6,250/month), that's a maximum of $1,750/month for housing. At a 6.52% rate with 20% down and typical taxes/insurance, this translates to a home price of roughly $280,000-$320,000.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is an informal estimate of what you can afford based on self-reported information — it's not a commitment. Pre-approval involves a full credit check and document review, giving you a firm commitment letter. Sellers take pre-approved buyers much more seriously, and pre-approval can be done in 24-48 hours with most lenders.
Should I lock my mortgage rate now or float?
Rate locks protect you from rising rates while you close. Most lenders offer 30-60 day locks. If rates are near historical averages (6.52% in 2026) and you're within 45 days of closing, locking is usually wise. Floating (not locking) makes sense only if you believe rates will drop significantly before closing.
What closing costs should I expect?
Closing costs typically range from 2% to 5% of the purchase price. On a $400,000 home, that's $8,000-$20,000. Common fees include: origination fee (0.5-1%), appraisal ($500-$700), title insurance ($1,000-$2,000), escrow deposits (2-6 months of taxes/insurance), and recording fees. You may be able to negotiate for the seller to pay some closing costs.
What is an amortization schedule?
An amortization schedule shows each monthly payment broken down into principal and interest over the life of your loan. In the early years, most of your payment goes toward interest. For example, on a 30-year $320K loan at 6.52%, your first payment is ~62% interest and only ~38% principal. By year 20, those percentages flip to ~35% interest and ~65% principal.
Sources: Freddie Mac Primary Mortgage Market Survey 2026, Federal Housing Finance Agency (FHFA), Bankrate, National Association of Realtors (NAR). Actual mortgage rates and terms vary by lender, credit score, and market conditions.